Quiet night for markets as US data backlog wait begins

US markets closed little changed overnight as they await a raft of previously delayed economic indicators.

US payrolls will be released tonight. The German Dax also hit the 'pause button'; however, the UK was encouraged by the prospect of continued global liquidity via US bond purchases and pushed 0.5% higher.

Trade on the SPI futures contract suggests a mildly positive opening for the Australian equity market, though profit taking after the recent lift in prices may well emerge.

Bonds:

Bond markets saw little movement with US two year yields steady at 0.31%. US long bond yields rose two basis points to 2.60%.

They are well down on the 3.00% seen in September but well above the 1.63% traded in May.

Longer end yields will react to news on the timing of any tapering of the Fed's bond purchases.

Foreign Exchange:

Like many markets, the USD was little changed overnight.

Markets appear either exhausted after the debt ceiling drama's or traumatised by the fact that the upcoming US statistics may be difficult to interpret following the government shutdown.

And then there is the ongoing 'timing of the tapering' debate. The USD index kept in a tight range but the USD did pick up against the yen.

The AUD is little changed from yesterday's opening prices but is a touch firmer against the NZD.

Commodities:

It was a quiet night in commodity markets. Gold edged marginally lower while copper was very marginally higher.

Oil prices continued their decline since recently peaking at above US$110 per barrel.

Oil ended the session at US$99.2 a decline of US$1.60 per barrel. The rise came as oil inventories rose on strong supply and only modest demand.

Australia: There was no key data in Australia yesterday.

Japan:

The trade balance narrowed to a deficit of ¥932.1bn in September, from a deficit of ¥962.8bn in August.

Exports growth slowed to 11.5% in the year to September, from 14.6% in the year to August, despite the weaker Yen.

Exports growth to Asia rose 8.2% in the year to September, down from 13.5% in the year to August, with sales to China slowing. Imports rose to 16.5% in the year to September, from 16.0% in the year to August, with the weaker Yen pushing import costs, including energy, higher.

The all industry activity index rose 0.3% in August, after rising 0.4% in July.

New Zealand:

Net migration rose to 2740 in September, the highest since July 2003, as fewer people departed for Australia.

Credit card spending fell 0.1% in September, after rising 1.4% in August. For the year to September, credit card spending is up 5.2%.

United Kingdom:

UK house prices rose 2.8% in October following a 1.5% decline September. Over the year, UK house prices are up 3.8% according to the monthly report by Rightmove.

United States:

Sales of existing homes fell 1.9% in September.

The decline was blamed on a reduction in home affordability as house prices and mortgage rates moved up.